How did the market react to the FED's decision? |
|
|
|
|
30-01-2008 |
|
Investors collected profits after nearly three sessions of
big gains, unwilling to leave money on the table amid ongoing economic
uncertainty.
The chart below shows how the market reacted to the FED's rate
cut.
It is interesting to note that immediately after the FED's decision, the Dow Jones Industrial index was
pushed up by speculative movements. In one hour it had gained 220 points,
passing from 12,461 points to 12,681.
Then it firmly pulled back, with traders awaiting key reports
on the job market and manufacturing set to arrive on Friday. The Dow, which had
been up more than 200 points after the Fed's decision, closed down 0.30%, at
12,442.83.
Investors' concerns about the state of the economy have not
let up yet.
|